KKR’s second Asia-Pacific infrastructure fund has secured $6.4bn (€5.9bn) in capital commitments, with over half of the capital already deployed or committed to investments.
KKR raised $3.9bn for the inaugural fund in the series in January 2021.
The global investment firm said the KKR Asia Pacific Infrastructure Investors II fund closed with capital commitments from a diverse group of new and existing global investors across the world, including public and corporate pensions, sovereign wealth funds, insurance companies, endowment funds and asset managers.
As previously reported, Sacramento County Employees’ Retirement System approved a $50m commitment to the KKR fund.
The fund has a broad investment mandate across various sectors, including renewables, power and utilities, water and wastewater, digital infrastructure and transportation, KKR said, adding that it has already invested or committed over 50% of the capital into 10 investments.
David Luboff, co-head of KKR Asia Pacific and head of the Asia-Pacific infrastructure business, said: “The success of the fundraise is a testament to the confidence that global investors have in our ability to deliver strong risk-adjusted returns and differentiated value-add through our established multi-asset platform, local presence in key markets and strong ability to collaborate across multiple strategies and the region.”
Hardik Shah, partner in KKR’s infrastructure team in Mumbai, said: “As Asia accounts for more than 60% of global growth, driven by rising domestic consumption and productivity, rapid urbanisation and an enormous emerging middle class, the need for new infrastructure and sustainable energy sources will continue to accelerate.
“We believe this backdrop presents a significant opportunity for value-added private infrastructure investors, and we welcome the chance to invest behind the development and success of critical infrastructure across Asia-Pacific.”
Keith Kim, partner in KKR’s infrastructure team in Seoul, said: “Our ability to create investment opportunities and successfully fundraise in a challenging macro environment reflects the strength of our localised teams who have a deep understanding of the markets and business landscapes where we invest, as well as KKR’s global expertise and capabilities.”
Brandon Donnenfeld, managing director in KKR’s global client solutions business, said: “KKR has built a differentiated infrastructure investing approach that combines our decades-long experience of being a value-add investor, having localised teams, and maintaining a focus on downside protection.”
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